For more than two decades, Ericsson has pioneered the development of themodern cellular network. Due to the research and development work of its more than onehundred thousand employees, over one thousand networks with more than two billionsubscriptions utilize Ericsson network equipment. Forty percent of all mobile calls aremade through Ericsson systems. Ericsson’s equipment can be found in more than onehundred and eighty countries.3.
As a result of its extensive research and development efforts, Ericsson hasbeen awarded more than thirty thousand patents worldwide. Ericsson is widely viewed asone of the leading innovators in the field of cellular telephony.4.
Ericsson owns and patented hundreds of inventions that are essential to theGSM, GPRS, EDGE, WCDMA, LTE and 802.11 wireless standards (“standard-essentialpatents”). Ericsson has repeatedly committed to license its standard-essential patents onfair, reasonable, and non-discriminatory (“FRAND”) terms. Ericsson also owns a valuableportfolio of patents that, while not essential to compliance with any industry standards, areglobally used to design and manufacture cellular handsets, smartphones, tablet computers,televisions, and many other electronic devices (“implementation patents”).5.
Ericsson has widely licensed its patents. It has entered into more than onehundred license agreements for its standard-essential patents. These licenses evidence theFRAND royalties that the telecommunications industry has agreed to pay Ericsson.Ericsson re-invests much of the licensing revenue it receives under these agreements intoinventing the future generation of telecommunications standards.6.
Samsung previously licensed Ericsson’s standard-essential patents in 2001and renewed that license in 2007. Samsung’s license has now expired. Samsung has sold